The ongoing military conflict in the Middle East and the closure of the Strait of Hormuz have prompted global shipping companies to implement precautionary measures for the movement of goods and safety of crew, while some firms have announced war-risk and contingency surcharges on cargo. The Strait of Hormuz, a key maritime corridor through which nearly 25 percent of the world’s oil passes, is critical for the transportation of crude oil and LNG. Any disruption to its traffic is expected to push global energy prices higher and increase shipping insurance costs.
Pakistan’s trade is expected to face immediate consequences, as a large portion of its imports and exports transit through the Gulf region. Pakistan Ships’ Agents Association (PSAA) Chairman Mohammad A. Rajpar warned that delays and additional costs are inevitable, highlighting risks to LNG and oil supplies. Karachi Gateway Terminal Limited (KGTL) suspended acceptance of new export cargo for Gulf-bound services with immediate effect, citing service disruptions by major shipping lines.
Hapag-Lloyd has implemented a booking stop for all cargo types from Africa to the Upper Gulf region, including the UAE, Iraq, Kuwait, Qatar, and the Eastern Province of Saudi Arabia. The company also imposed a contingency surcharge for shipments between the Red Sea, North Europe, the Mediterranean, and North Africa. The surcharge stands at $1,500 per TEU for standard containers and $3,500 per container for reefer containers and special equipment, effective from March 3 until further notice.
Maersk announced the temporary suspension of Trans-Suez sailings through the Bab el-Mandeb Strait, rerouting services via the Cape of Good Hope for ME11 and MECL routes. DP World temporarily paused operations at Jebel Ali Port, while Mediterranean Shipping Company (MSC) suspended bookings for all cargo destined for the Middle East. Cosco Shipping Lines instructed vessels inside the Gulf to move to safe waters and advised incoming ships to prioritize navigational safety at sheltered anchorages.
FPCCI President Atif Ikram Sheikh called for emergency measures to mitigate the impact on Pakistan’s trade and industry. He warned that the disruption threatens Pakistan’s economic recovery, energy security, and export competitiveness. With nearly 30 percent of global petroleum consumption passing through the Strait of Hormuz, prolonged disruptions could significantly affect supply chains. Pakistan imports over $5.7 billion in crude petroleum annually from Saudi Arabia and the UAE, with total petroleum imports reaching $10.71 billion in FY25, including refined products.
Sheikh highlighted that freight and insurance surcharges could extend transit times for Pakistani exports to the EU, UK, and US by 15 to 20 days. Marine insurance premiums have already risen due to war-risk classifications, and freight costs on major routes may increase by up to 300 percent. This situation is likely to raise the cost of imported raw materials and weaken the price competitiveness of Pakistan’s textile and manufacturing exports, further challenging exporters amid global market volatility.
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